The Proprietor Mr.RADHAKRISHNANANDAM has, in a two decade’s time in the field of housing construction, earned considerable amount of good will. He has earned reputation for clean dealings and providing quality houses at affordable prices which will boost the company’s image. The company will benefit considerable by this goodwill. The company believes that earning good will in operation is the best long term marketing strategy.
The company will professionally market its projects by launching persuasive and informative advertisement impugns through various sections of the media. Advertisement campaigns will be launched before booking for each project are commenced, in order to give maximum exposure to the projects. This marketing strategy will be implemented continuously. Besides, the company will also arrange for inspection of the projects which would give confidence in the minds of customers. The company will arrange for individual loans (buyers loan) for the customers through LIC Housing Finance Limited & Bankers. This will go a long way in selling the projects.
BUSINESS PROSPECTS AND PROFITABILITY
The construction industry is a growing industry in India due to huge infrastructural facilities required for developing residential buildings, office premises, etc., The need for housing itself is enormous according to estimates available from the National Housing Bank. The housing shortage in the states of Tamil Nadu, Andra Pradesh, Karnataka, Kerala and Pondicherry is huge.
With realizations announced by the RBI in the FERA, permitting NRIS and foreign National bodies to invest in immovable properties in India, the demand for housing in India is expected to grow in the future.
The contribution of private sector to total investment in housing in India, in the 1990’s represented more than four times the investment of the Public sector. The share of the private sector in total investment was high as 92% during the seventh five year plan. The private developers at Chennai have built, on an average, about seven thousand shelters annually since 1987. In the last decade, the number of permits granted for flat construction has increased at an average of 18% p.a.
Hence the market for housing is considerable and the demand supply scenario is in favour of the company.